Supply chain bottlenecks, customer behavior shifts, and competitive pressures force businesses to reinvent operations. Digital technologies, in particular, have become significant enablers for business model transformations but also sources of disruption.
Leaders realize that their technology investments now directly impact their companies’ viability. A 2024 Annual CEO Survey from PwC found that 45% of leaders worry that their company will not be viable in a decade if it stays on its current path.
Tech-led transformation has thus become the core pillar of business strategy. Yet, the link between tech investments and specific business outcomes — revenue growth, higher customer satisfaction, bigger market share—is not always apparent.
In this post, we’d like to show how leaders can ensure a strong alignment between new tech investments and business objectives, using technology roadmapping. But first, let’s recap the basics.
What is a Technology Roadmap?
A technology roadmap outlines the technologies and organizational capabilities a company must develop to meet overarching business objectives. Spanning two to five years, it helps:
- Formulate and document a long-term vision for digital transformations
- Identify key enablers and blockers in the strategy
- Prioritize strategic technologies and capabilities
- Coordinate activities across the organization
- Establish transparency and clear communication
The main goal of a technology roadmap is to level-set new technology acquisitions with business goals and identify key steps on their journey. The roadmap focuses the C-suite and management efforts on the most important tech priorities. It answers the “what”, “why”, and “when” in your initiatives, helping leaders better allocate resources, establish realistic timelines, and monitor execution.
How To Align Your Technology Roadmap With Business Objectives
A well-designed technology roadmap pegs technology initiatives to specific business outcomes like improvements in customer experience or new revenue enablement.
The problem, however, is that leaders often struggle to ‘connect the dots’ between specific investments and desired outcomes. Because of that, we often see headlines proclaiming that “yet another emerging technology fails to deliver ROI.”
Indeed, measuring ROI from new technology acquisitions is challenging because we’re looking at more than a mere technology shift. New acquisitions often trigger wider operational and business model transformations, generating direct and indirect returns across multiple teams and processes.
To identify and multiply these positive impacts, we recommend using the following technology roadmapping best practices.
Identify Your North Star Metrics
Technology is a means to an end, not an end unto itself. For this reason, cloud migration or AI adoption cannot be a standalone goal. Such initiatives should be tied to specific business outcomes to measure and claim ROI.
Leading companies use the North Star Metric as the main measure of success for their tech initiatives. Depending on the industry and business model, a North Star Metric can be “revenue growth”, “profit margin”, “transaction volume”, “daily active users”, or “number of paid subscriptions”. Choose a metric that, if it increased today by 2X, would indicate that your company has truly made it.
Precise, measurable metrics focus everyone’s attention on a shared objective. As a decision-making tool, North Star Metric helps prioritize initiatives and better quantify their impacts. By 2025, 80% of CTOs with business-outcome-focused technology roadmaps will see a 20% increase in employee and customer satisfaction scores.
Determine Your Position In the Market
Emerging technologies can change the industry stakes in a matter of months. Buy now pay later (BNPL) companies quickly capitalized on the growing adoption of digital payment methods and e-commerce, eroding the profits of traditional banks. Software as a service (SaaS) companies rendered perpetual software licenses a thing of the past.
Understanding the key shaping forces in the digital markets is critical to determining the general industry direction—the prevailing trends and shifts that will shape its future trajectory.
By understanding the overarching trends, leaders can exercise better judgment when it comes to:
- Emerging customer needs, unaddressed by other entrants
- Proliferating risks, endangering market share
- Opportunities for differentiation from competitors
- New partnership opportunities with emerging players
- Necessary business model transformations
Using this knowledge, leaders can better align their technology roadmaps with the target objectives and carve out a stronger position in the market.
To illustrate the above, let’s take the language learning market. The latest EdTech trends suggest an increased focus on using data science for user analytics and generative AI for course authoring and content development. However, different players use the same technology uniquely to secure a competitive advantage.
Duolingo maintains its position as a self-paced language-learning app. In 2023, it retired its Classes feature, which allowed users to host or attend live language classes. Instead, the company doubled down on optimizing self-paced learning using data analytics strategies. Duolingo heavily invested in improving its machine learning algorithms for language learning assessments and was among the first to incorporate a GPT-4 based assistant into its premium plan.
Babbel, on the contrary, is switching from a self-study app to a blended learning model. Following the re-branding, the company announced more Babbel Live classes, engaging magazine content, and podcast series. The company also heavily invests in data analytics initiatives to monitor the impact of any product changes on learners’ experience, optimize course content, and improve user retention. But unlike Duolingo, Babbel channels its technology investments into personalized live learning to thrive in the market.
Both EdTech companies share the same niche—language learning—but have a different vision of their position in the industry, backed by respective business objectives. Duolingo aims to maximize the total number of daily active users and engagement to increase conversions to premium subscriptions, while Babbel directs more efforts toward maximizing paid user acquisition and retention.
Know Your Blockers
You have your target metrics and a vision for your business’s desired future state. But the speed and success of your technology transformation journey will also depend on your starting position — the as-is baseline.
Every company’s starting position is determined by its data, talent, operating model, and technology portfolio. Each of these factors can be either an enabler or a blocker.
| Factor | Enabler | Blocker |
| Data | Scalable data lake architecture for aggregating customer insights | Existing data pipelines cannot support real-time analytics |
| Talent | Competent cloud engineering function | Missing data science and ML skill sets |
| Operating model | Cross-functional, autonomous product teams | Siloed communication between Product and Engineering teams |
| Technology portfolio | Cloud-native mobile application | Monolith application design with limited scalability |
Blockers usually include gaps in certain capabilities, monetary constraints, and operational inefficiencies. They increase operational risks, extend project timelines, and undercut ROI. Many of these can (and should) be addressed on your roadmap through specific initiatives like migrating to a microservices architecture and adopting DevOps to support the core product.
The challenge, however, is that when one blocker goes, others emerge. For instance, cloud migration could solve the problem of poor scalability and curb some tech debt, but it may raise cost optimization challenges.
A clear future vision for your company’s position in the industry, backed by North Star Metrics, helps determine which blockers to address first and which can be acceptable tradeoffs at any given stage. For example, sometimes you may need to delay releasing new product features and repay technical debt first to avoid undermining user experience or facing huge IT infrastructure costs. Likewise, it’s a risky move to launch a public-facing AI system if you lack experience in AI security.
Place all known blockers, present-day, on your technology roadmap and prioritize them by severity. Flag critical gaps preventing you from reaching the next milestone. Then, consider strategies for resolving them. Include these as sub-steps on the roadmap.
Analyze Your Tech Portfolio
Few businesses start with a ‘clean’ technology slate. Your current IT portfolio and system design already possess certain inefficiencies. These may include mounting technical debt, increasing infrastructure costs, or technology sprawl — overspending on redundant and poorly compatible technologies.
To detect and assess the impacts of such issues, you’ll need to update your IT asset inventory. Map all physical and virtual systems (infrastructure, applications, networks, etc.) you currently have. Assign each asset an owner, designation, and value level based on its role in your company’s strategy.
By consolidating IT asset data, it becomes easier to identify gaps in your tech portfolio and flag redundant or legacy assets. For example:
- Identify necessary hardware upgrades
- Consolidate duplicate licenses
- Address system vulnerabilities
- Formalize new tech adoption requirements
Emerging technologies like AI or IoT come with technical prerequisites. For machine learning, that’s a reliable, cloud-native data architecture. Industrial IoT deployments require secure, low-latency networking at the installation site and experience with edge computing. Without understanding how these technologies will slot into your current infrastructure and what degree of changes are required, it’s impossible to evaluate the adoption costs and estimate subsequent ROI properly.
As part of our strategic consulting service, 8allocate helps leaders create reference architectures for adopting new technologies based on initial tech portfolio assessments. Our specialists identify areas needing improvement and create architecture solutions for your domain. The roadmap also includes a technology life cycle management sub-map that tracks current and planned changes to applications and infrastructure, ensuring steady progress across the key initiatives.
Formalize a Technology Implementation Plan
A detailed description of your ‘as is’ state helps you understand the present role of technology in your business and identify areas of strengths and inefficiencies. North Star Metrics, combined with a strong industry vision, help you describe the future ‘to-be’ state. A technology implementation plan, in turn, bridges the gap between them.
Unlike a broader technology roadmap, an implementation plan offers a close-up view of current and planned projects, their statuses, and priorities. Many initiatives will be interdependent and thus prone to blockers and possible setbacks.
A common challenge with technology implementation, however, is that it usually has no clear finishing line. Once you’ve embedded AI into one process, you may want to explore other use cases or focus on upgrading data infrastructure for real-time processing.
Successful teams usually adopt a continuous interaction approach, where one successfully completed tech milestone evolves into the next or breaks down into several ancillary initiatives. Such an approach allows you to test different hypotheses and progressively refine your approaches. Ongoing experimentation and incremental improvements add up. For instance, the Microsoft Bing unit increased revenue per search from 10% to 25% annually by rolling out incremental monthly product improvements (rather than spending a year on delivering one big product update that may have flopped).
Maximize Technology Adoption Rates
The culprit of the technology implementation stage is full adoption. As mentioned already, new technology doesn’t automatically start bringing dividends. It has to be used by the majority of your employees and/or customers to bring you closer to the target objectives.
Typically, most tech initiatives start as pilot projects, limited to one team or business process. A pilot deployment allows validating the initial assumption and securing ‘quick wins’ to demonstrate value to other stakeholders. As the “pioneering” team starts demonstrating better performance, others will be enticed to adopt the new solution.
For instance, Spotify started experimenting with Agile software engineering practices with a small group of employees back in 2009. Through trial and error, the team progressively figured out the optimal team structures, workflows, and cultural practices to scale Agile across 30 teams and 3 cities by 2012.
Spotify also used a similar approach to building out its platform engineering practice — by supporting grassroots initiatives and encouraging contributions from different business units. Over time, Spotify addressed more and more developers’ frustration, eventually building out an internal platform boasting an impressive 99% voluntary adoption rate.
To promote greater technology adoption across business units, determine what matters to each category of adopters. Next, appoint the main sponsor — a person who’ll champion the change and rally others to join. Prosci research found that having a highly effective sponsor increases the likelihood of success by almost three times.
From there, keep open communication with the project sponsors. Ask about the bottlenecks and challenges they’re facing regarding adoption and aim to resolve these proactively.
Revisit and Refine Your Technology Roadmap
A technology roadmap is an evolving document. It should be refined based on the evolving
market conditions, changes in the industry, and learnings from the pilot and scaled initiatives.
Revisit your roadmap every quarter and reassess all the in-progress initiatives through the length of:
- Relevance: Does this project still make sense?
- Risks: Are there any new problems to plan for?
- Resource: Do we need to add extra resources to succeed?
Periodic reviews help ensure that you’re staying on the right course and making steady progress towards the target objectives. Set regular check-in meetings to review task completion, confirm timelines, and reassess resource allocation.
Regular reviews, combined with agility in change management and execution, also help leaders rapidly change gears during turbulent periods. When the pandemic hit, Airbnb managed to quickly shift focus from its core product development to new offerings like “digital experiences” and quarantine stays. By reacting rapidly to the dire market conditions, Airbnb stayed afloat and successfully IPOed by the end of the year.
On the other hand, companies that refuse to adapt and innovate eventually see their demise. Kodak was well aware of the rising popularity of digital cameras among consumers. (Heck, they invented the first digital camera in 1975!). But instead of investing in the new technology, the management chose to continue making money from film sales (while these lasted) — a decision that led to the company’s bankruptcy in 2012.
The bottom line: Businesses that try to battle the market rather than capitalize on its changes hardly ever succeed. Regular roadmap reviews help avoid dumping resources into inconsequential initiatives.
Final Thoughts
Like “painting by numbers”, a roadmap provides a better sense of direction for the organization and helps leaders prioritize the right projects at the right time. By identifying North Star Metrics and understanding the position of the market, leaders can make informed decisions about which technology investments to prioritize to achieve the target business objectives.
As a communication tool, a technology roadmap also helps convey the value to all stakeholders and communicate priorities downstream, ensuring faster technology adoption among the employees. This helps ensure that technology investments directly impact the company’s profitability and contribute to its long-term competitiveness.
Create and refine your technology adoption roadmap with 8allocate’s help. As part of our strategic consulting service, we help leaders achieve better alignment between their tech investments and key business metrics. Contact us to receive a personalized consultation.
Frequently Asked Questions
Quick Guide to Common Questions
What is a technology roadmap, and why is it important?
A technology roadmap is a strategic plan that aligns technology investments with business objectives over time. It helps companies prioritize innovations, optimize resources, and maintain a competitive advantage by defining short- and long-term digital transformation goals.
What are the key components of a well-structured technology roadmap?
A comprehensive technology roadmap should include:
- North Star Metrics – Clear indicators of business success.
- Market Positioning – Competitive landscape analysis.
- Blockers & Risks – Identifying technical and operational gaps.
- Technology Portfolio Assessment – Optimizing existing solutions.
- Implementation Plan – A phased rollout with success metrics.
What are common mistakes when aligning technology with business objectives?
- Investing in technology without clear business impact.
- Ignoring market trends and customer needs.
- Lack of collaboration between IT and business teams.
- Overlooking scalability and long-term costs.
How can businesses measure the success of their technology roadmap?
Success can be tracked through:
- Operational Efficiency – Faster workflows, reduced downtime, and cost savings.
- Customer Impact – Higher engagement, lower churn, and improved satisfaction.
- Financial Performance – Revenue growth, optimized expenses, and clear ROI.
How can companies ensure the successful adoption of new technologies?
- Start with pilot programs to validate solutions.
- Provide structured training for teams.
- Monitor adoption rates and address usability challenges.
- Ensure alignment between technology and business goals.
What factors should be considered before integrating AI or automation?
- Data Readiness – Ensuring structured, high-quality data.
- Business Impact – Identifying clear ROI-driven use cases.
- Scalability & Integration – Compatibility with existing infrastructure.
- Compliance & Security – Addressing governance and ethical concerns.
How often should a technology roadmap be updated?
It should be reviewed quarterly or biannually, depending on:
- Industry changes and competitive shifts.
- Business growth and evolving priorities.
- New opportunities in AI, cloud, or cybersecurity.
